Homex Reports Strong Revenue, EBITDA and Net Income Growth in the Third Quarter of 2007 with an Aggressive Expansion Program

CULIACAN, Mexico, Oct. 23 /PRNewswire-FirstCall/ -- Desarrolladora Homex, S.A.B. de C.V. ("Homex" or "the Company") today announced results for the third quarter ended September 30, 2007(1).

Highlights -- Total revenues increased 18.4% in the third quarter of 2007 to Ps.4.0 billion from Ps.3.3 billion in the third quarter of 2006. -- The Company sold 13,229 homes during the third quarter, representing an increase of 19.1% over the same period of 2006. Affordable entry and middle income unit sales increased 18.3% and 29.1%, respectively, during the quarter. -- EBITDA during the quarter was Ps.937.9 million, a 16.7% increase from the Ps.803.4 million reported in the third quarter of 2006. -- Net income increased 14.6% in the third quarter of 2007 to Ps.550.5 million from Ps.480.5 million in the third quarter of 2006. -- Accounts receivable as a percentage of total revenues improved to 40.6% from the 43.8% reported in September 2006. Accounts receivable turnover days improved to 146 days as of September 2007 from 158 days reported as of September 2006. -- Homex continued its national expansion program with the launch of 11 new projects, a historical record for the Company as well as the consolidation of investments in technology and modernization of its production processes.

(1) Unless otherwise noted, all monetary figures are in Mexican pesos and restated as of September 30, 2007 in accordance with Mexican GAAP. The symbols "Ps." and "$" refer to Mexican pesos and "US$" refers to U.S. dollars. The third quarter 2007 financial information is unaudited and is subject to adjustment.

"Homex continues to post strong results ahead of the industry average growth, mainly as a result of our business strategy, execution capabilities and continued innovation both in construction and sales; we will continue to invest aggressively to ensure our future growth," commented Gerardo de Nicolas, Chief Executive Officer of Homex. "We are very optimistic about the positive trends and high growth potential of the Mexican housing market in the foreseeable future, both in affordable entry-level and middle income housing, where the federal government has proven its capacity to maintain and increase the mortgage supply and innovation. We believe that Homex is extraordinarily positioned to leverage from these opportunities, and continue its aggressive expansion plan with more attractive products," added Mr. de Nicolas.

FINANCIAL AND OPERATING HIGHLIGHTS NINE MONTHS Thousands of constant pesos as of September 30, 2007, unless otherwise indicated 3Q'07 3Q'06 % Chg. 2007 2006 % Chg. Volume (Homes) 13,229 11,108 19.1% 35,279 30,281 16.5% Revenues $3,964,333 $3,349,258 18.4% $10,459,317 $8,758,779 19.4% Gross profit $1,312,956 $1,076,898 21.9% $3,375,775 $2,783,611 21.3% Operating income $863,144 $768,028 12.4% $2,280,643 $1,961,312 16.3% Net Interest Expense $125,793 $128,939 -2.4% $294,945 $343,916 -14.2% Net Income $550,481 $480,523 14.6% $1,433,423 $1,077,435 33.0% EBITDA (a) $937,992 $803,450 16.7% $2,640,241 $2,086,317 26.6% Gross Margin 33.1% 32.2% 32.3% 31.8% Operating Margin 21.8% 22.9% 21.8% 22.4% EBITDA Margin 23.7% 24.0% 25.2% 23.8% Earnings per share 1.64 1.43 4.27 3.21 Earnings per ADR presented in US$ (b) 0.91 0.80 2.38 1.79 Weighted avg. shares outstanding (MM) 335.9 335.9 335.9 335.9 Accounts receivable (as a % of sales) 40.6% 43.8% Accounts receivable (days) period-end 146 158 Inventory turnover (days) period-end 331 254 Inventory (w/o land) turnover (days) period-end 63 51 (a) EBITDA is defined as net income plus depreciation and amortization, net comprehensive financing cost, income tax expense and employee statutory profit sharing expense. Please see Financial Results / EBITDA, which includes a table that sets forth a reconciliation of net income to EBITDA for the third quarter 2007 and 2006. (b) US$ values estimated using an exchange rate Ps.10.77 per US$1.00. Common share/ADR ratio: 6:1 Detailed Financial Reports

The Company produces a detailed earnings report that provides information regarding Operating and Financial results. This detailed information is considered part of this earnings announcement and is available in full with this earnings release via the Company's website at http://www.homex.com.mx/, through email distribution or the Company's filings with the SEC and the CNBV.

Attached are the unaudited Consolidated Financial Information Data of Desarrolladora Homex, S.A.B. de C.V. for the three-month period and nine-month period ended September 30, 2007 and 2006, the Consolidated Statement of Changes in Financial Position for the nine-month period ended September 30, 2007 and 2006 and the Consolidated Balance Sheet of Desarrolladora Homex, S.A.B. de C.V. as of September 30, 2007 and 2006.

DESARROLLADORA HOMEX CONSOLIDATED BALANCE SHEET COMPARISON OF SEPTEMBER 30, 2007 WITH SEPTEMBER 30, 2006 (Figures in thousands of constant pesos as of September 30, 2007) Sep-07 Change Sep-06 Change 07/06 07/06 ASSETS CURRENT ASSETS Cash and cash equivalents 2,103,071 10.4% 1,951,299 12.4% 7.8% Accounts receivable, net 6,045,374 29.9% 5,295,926 33.8% 14.2% Inventories 9,310,662 46.1% 5,846,110 37.3% 59.3% Other current assets 432,339 2.1% 286,279 1.8% 51.0% Total current assets 17,891,446 88.6% 13,379,614 85.3% 33.7% Property and equipment, net 972,109 4.8% 671,698 4.3% 44.7% Goodwill 718,793 3.6% 718,793 4.6% 0.0% Other assets 617,149 3.1% 909,524 5.8% -32.1% TOTAL 20,199,497 100.0% 15,679,629 100.0% 28.8% LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Notes payable to financial institutions 689 0.0% 6,038 0.0% -88.6% Accounts payable 4,080,605 20.2% 2,286,735 14.6% 78.4% Advances from customers 351,151 1.7% 427,289 2.7% -17.8% Taxes payable 202,299 1.0% 231,252 1.5% -12.5% Total current liabilities 4,634,744 2,951,314 57.0% Long-term notes payable to financial institutions 3,890,890 19.3% 3,510,385 22.4% 10.8% Labor Obligations 51,977 0.3% 44,628 0.3% 16.5% DEFERRED INCOME TAXES 2,671,104 13.2% 1,921,136 12.3% 39.0% Total liabilities 11,248,715 55.7% 8,427,463 53.7% 33.5% STOCKHOLDERS' EQUITY Common stock 518,583 2.6% 518,583 3.3% 0.0% Additional paid-in capital 3,221,652 15.9% 3,221,652 20.5% 0.0% Retained earnings 4,876,784 24.1% 3,276,359 20.9% 48.8% Excess in restated stockholders' equity 326,094 1.6% 330,553 2.1% -1.3% Cumulative initial effect of deferred income taxes -155,010 -0.8% -155,010 -1.0% 0.0% Majority Stockholders' Equity 8,788,103 43.5% 7,192,137 45.9% 22.2% Minority interest 162,679 0.8% 60,029 0.4% 171.0% TOTAL STOCKHOLDERS' EQUITY 8,950,782 44.3% 7,252,166 46.3% 23.4% TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 20,199,497 100.0% 15,679,629 100.0% 28.8%

DESARROLLADORA HOMEX CONSOLIDATED INCOME STATEMENT COMPARISON OF THIRD QUARTER

2007 WITH THIRD QUARTER 2006 (Figures in thousands of constant pesos as of September 30, 2007) 3Q'07 3Q'06 Change 07/06 REVENUES Affordable-entry level revenue 3,090,782 78.0% 2,756,263 82.3% 12.1% Middle income housing revenue 806,650 20.3% 550,031 16.4% 46.7% Other revenues 66,902 1.7% 42,964 1.3% 55.7% TOTAL REVENUES 3,964,333 100.0% 3,349,258 100.0% 18.4% COSTS TOTAL COSTS 2,651,377 66.9% 2,272,360 67.8% 16.7% GROSS PROFIT 1,312,956 33.1% 1,076,898 32.2% 21.9% SELLING AND ADMINISTRATIVE EXPENSES Selling and Administrative Expenses 426,537 10.8% 308,870 9.2% 38.1% Beta Trademark Amortization 23,275 0.6% - 0.0% - TOTAL SELLING AND ADMINISTRATIVE EXPENSES 449,812 11.3% 308,870 9.2% 45.6% OPERATING INCOME 863,144 21.8% 768,028 22.9% 12.4% OTHER INCOME AND EXPENSES 7,989 0.2% 9,783 0.3% -18.3% NET COMPREHENSIVE FINANCING COST Interest expense and commissions 161,698 4.1% 165,707 4.9% -2.4% Interest income -35,905 -0.9% -36,768 -1.1% - Foreign exchange (gain) loss -86,001 -2.2% -92,263 -2.8% -6.8% Monetary position loss 1,999 0.1% 29,883 0.9% -93.3% 41,792 1.1% 66,559 2.0% -37.2% INCOME BEFORE INCOME TAX AND EMPLOYEE STATUTORY PROFIT SHARING EXPENSE 829,341 20.9% 711,252 21.2% 16.6% INCOME TAX EXPENSE 246,074 6.2% 225,149 6.7% 9.3% NET INCOME 583,267 14.7% 486,103 14.5% 20.0% MAJORITY INTEREST 550,481 13.9% 480,523 14.3% 14.6% MINORITY INTEREST 32,786 0.8% 5,580 0.2% 0.0% NET INCOME 550,481 13.9% 480,523 14.3% 14.6% Earnings per share 1.64 0.0% 1.43 0.0% 14.6% EBITDA 937,992 23.7% 803,450 24.0% 16.7%

DESARROLLADORA HOMEX CONSOLIDATED INCOME STATEMENT COMPARISON OF NINE MONTHS

2007 WITH NINE MONTHS 2006 Figures in thousands of constant pesos as of September 30, 2007 2007 Change 2006 Change YTD 07/06 YTD 07/06 REVENUES Affordable-entry level revenue 8,050,066 77.0% 7,098,595 81.0% 13.4% Middle income housing revenue 2,278,661 21.8% 1,516,712 17.3% 50.2% Other revenues 130,590 1.2% 143,471 1.6% -9.0% TOTAL REVENUES 10,459,317 100.0% 8,758,779 100.0% 19.4% COSTS TOTAL COSTS 7,083,542 67.7% 5,975,168 68.2% 18.5% GROSS PROFIT 3,375,775 32.3% 2,783,611 31.8% 21.3% SELLING AND ADMINISTRATIVE EXPENSES Selling and Administrative Expenses 1,025,776 9.8% 822,299 9.4% 24.7% Beta Trademark Amortization 69,356 0.7% - 0.0% - TOTAL SELLING AND ADMINISTRATIVE EXPENSES 1,095,132 10.5% 822,299 9.4% 33.2% OPERATING INCOME 2,280,643 21.8% 1,961,312 22.4% 16.3% OTHER INCOME 162,011 1.5% 49,797 0.6% 225.3% NET COMPREHENSIVE FINANCING COST Interest expense and commissions 397,490 3.8% 430,366 4.9% -7.6% Interest income -102,545 -1.0% -86,450 -1.0% 18.6% Foreign exchange (gain) loss -48,430 -0.5% 53,382 0.6% -190.7% Monetary position loss 40,842 0.4% 36,805 0.4% 11.0% 287,357 2.7% 434,103 5.0% -33.8% INCOME BEFORE INCOME TAX AND EMPLOYEE STATUTORY PROFIT SHARING EXPENSE 2,155,297 20.6% 1,577,006 18.0% 36.7% INCOME TAX EXPENSE 648,528 6.2% 497,381 5.7% 30.4% NET INCOME 1,506,769 14.4% 1,079,625 12.3% 39.6% MAJORITY INTEREST 1,433,423 13.7% 1,077,435 12.3% 33.0% MINORITY INTEREST 73,346 0.7% 2,190 0.0% - NET INCOME 1,433,423 13.7% 1,077,435 12.3% 33.0% Earnings per share 4.27 3.21 33.0% EBITDA 2,640,241 25.2% 2,086,317 23.8% 26.6% Consolidated Statement of Changes in Financial Position For the nine months ended September 30, 2007 and 2006 (In thousands of Mexican pesos of purchasing power of September 30, 2007) YTD 2007 YTD 2006 Net income 1,433,423 1,077,435 Non Cash items: Depreciation 128,231 75,207 Minority Interest 73,346 2,190 Amortization of Beta trademark 69,356 - Deferred income taxes 648,528 497,381 2,352,884 1,652,213 (Increase) decrease in: Trade accounts receivable (733,605) 499,463 Inventories (w/land) (85,354) (224,278) Trade accounts payable (1,425,684) (906,562) Other A&L, net (1) (190,677) (158,740) Changes in operating assets and liabilities (2,435,321) (790,117) Operating Cash Flow (82,437) 862,096 Capex (443,191) (258,255) Free Cash Flow (525,629) 603,841 Net Financing Activities 252,611 (51,260) Net increase (decrease) cash (273,017) 552,581 Balance at beginning 2,376,089 1,398,718 Balance at end 2,103,071 1,951,299 (1) Includes adjustment of goodwill and others. About Homex

Desarrolladora Homex, S.A.B. de C.V. [NYSE: HXM, BMV: HOMEX] is a leading, vertically-integrated home development company focused on affordable entry- level and middle-income housing in Mexico. It is one of the most geographically diverse homebuilders in the country. Homex has a leading position in the top four markets in Mexico and is the largest homebuilder in Mexico, based on the number of homes sold and net income.

For additional corporate information, please visit the Company's web site at: http://www.homex.com.mx/

Desarrolladora Homex, S.A.B. de C.V. quarterly reports and all other written materials may from time to time contain statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors can cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include economic and political conditions and government policies in Mexico or elsewhere, including changes in housing and mortgage policies, inflation rates, exchange rates, regulatory developments, customer demand and competition. For those statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Discussion of factors that may affect future results is contained in our filings with the Securities and Exchange Commission.